Kuwait poised to buy $783mn City development

LONDON CALLING: The KIA is in 'late-stage' discussions to buy a building in the City for up to $783 million. (Getty Images)

The Kuwait Investment Authority (KIA) looks set to swoop for an office tower in the City of London owned by British Land, which is suffering due to the downturn in the UK property market.

The sovereign wealth fund's property arm St. Martins is in "late-stage" discussions with British Land to buy the Foster & Partners-designed building for as much as 400 British pounds ($783 million), the UK's Financial Times newspaper reported on Saturday.

The 465,000-square foot building will be the headquarters of insurance broker Willis. British Land agreed to construct the building three years ago, but it was only launched last week.

Analysts have welcomed the deal as many believe British Land is highly exposed to the City's property market, which has been particularity badly hit by the downturn in the wider UK housing market due to the expected effect job losses among banks will have on demand for office space.

KIA said in March it was interested in investing in real estate assets after the subprime mortgage crisis has cut asset prices.

RELATED: Kuwait fund hungry for European, US investments

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